Delete, uninstall everything

I am buying a new Mac and want to give away my current computer stripped of all files, etc.
What is best way to do this?
Thanks for help.
Don

This is the short version:
Prepare Your Mac for Sale
Boot from the OS X Installer Disc One that came with the computer. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Utilities (Installer menu if using Panther or Jaguar) menu. After DU loads select the startup volume from the left side list then click on the Erase tab. Set the format type to Mac OS Extended (Journaled) then click on the Options button. Select the one pass Zero Data option and click on the OK button. Then click on the Erase button.
Note: You can skip the Zero Data option if you are not concerned about removing sensitive personal data from the hard drive. If you choose to skip this part of the process then it is possible for others to recover data from the hard drive. The Zero Data procedure will prevent others from getting access to your personal information.
This process will take 30 minutes to several hours depending upon the size of the hard drive. After formatting has completed quit DU and return to the installer. Now complete the OS X installation. At the completion of the installation do not restart the computer. Instead just shut it off. The next user will be presented with the Setup Assistant when they turn on the computer just as it would if new out of the box.
This is the long version:
Follow these instructions step by step to prepare a Mac for sale:
First, back up the data:
1. Shut down all Virtual PCs. They cannot be in their "fast saved" state. They must be shut down from inside Windows.
2. Clone to an external drive using using Restore option of Disk Utility.
Next, prepare the machine for the new buyer:
3. Deauthorize the computer in iTunes! Deauthorize both iTunes and Audible accounts.
4. Remove Open Firmware passwords
5. Turn the brightness full up and volume nearly so.
Install a fresh OS:
6. Insert the OS X install CD/DVD.
7. Restart the computer while holding down the C key to boot from the CD/DVD.
8. Run Disk Utility from the file menu and erase the internal hard drive (optionally zero all data).
9. Install OS X.
10. Reboot the computer.
11. From the welcome screen, you can skip the registration step by typing command-Q.
12. When prompted, create an account (it will be an admin account).
13. From your new admin account, configure networking.
14. Then use Software Update to bring your system and all of it's applications up to date.
15. From Disk Utility, repair permissions on the new volume.
Now delete the account you just created:
16. Boot from a different volume (e.g. a firewire drive, if available)
17. Clean up the image using the following terminal commands:
prompt> rm /Volumes/<imagevol>/var/db/BootCache.playlist
prompt> rm /Volumes/<imagevol>/var/db/volinfo.database
prompt> rm -r /Volumes/<imagevol>/var/vm/swap*
18. Now you can get rid of the admin account you used to set up the machine Use the terminal:
prompt> nicl -raw /Volumes/<imagevol>/var/db/netinfo/local.nidb -delete /users/<admin>
prompt> rm -r /Volumes/<imagevol>/Users/<admin>
prompt> rm /Volumes/<imagevol>/var/db/.AppleSetupDone
19. Shut down and ship it to your buyer. When they get it, it will boot to the Welcome screen just like a factory Mac, except that it's better because it's completely up to date.
Or you can simply erase the drive and give the computer without anything installed. Be sure you include the installer discs, however.
If you are concerned about someone gaining access to the data on the hard drive then when you erase the drive use the Zero Data option (one pass is sufficient.)

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